Assume a Country Agrees to a Free-Trade Act with Another

Multiple Choice

Assume a country agrees to a free-trade act with another country.In the process,some individuals are displaced from their jobs,thus the free-trade act results in a negative externality.

A) False
B) True
C) Only if those who were displaced are not compensated with another job or income transfer.
D) Only if those who were displaced were compensated with another job or income transfer.